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Townsend Public Affairs urges Temecula to watch Sacramento budget, housing and wildfire bills
Summary
Casey Elliott of Townsend Public Affairs briefed Temecula council on 2026 state priorities: a compact second-year legislative calendar, budget risks tied to revenue projections, cap-and-invest reauthorization, CEQA exemptions, housing bills including SB 79, and likely wildfire and e-bike safety legislation.
Casey Elliott, vice president of Townsend Public Affairs, told the Temecula City Council that Sacramento’s 2026 calendar will be compact and full of carryover work from last year.
"We’re beginning 2026 as the second year of a legislative session in Sacramento," Elliott said, and noted the legislature is handling holdover bills while preparing for a new bill-introduction deadline in late February.
Elliott outlined budget dynamics shaping local impacts: the governor’s January proposal anticipates about $350 billion in total spending and a projected $2.9 billion general fund shortfall, which the administration proposed to address largely by deferring a rainy-day fund payment. Elliott cautioned that the Department of Finance’s revenue projections could change and that the Legislative Analyst’s Office has warned of sharper shortfalls later in the cycle.
On policy, Elliott highlighted the cap-and-invest (formerly cap-and-trade) reauthorization through 2045 and a multi-billion-dollar funding stream for air quality and related programs. He said CEQA exemptions were a major focus last year and warned that zoning, streamlining and housing-delivery bills (including cleanup to SB 79) will continue to move this year.
Elliott also expected bills on e-bike safety and wildfire response and flagged a housing bond being prioritized for the November ballot, describing an early figure of about $10 billion under consideration. "We anticipate there’ll be a significant number of bills related to e-bikes and safety provisions," he said.
Why it matters: The state budget and legislation will determine funding opportunities and constraints for local projects and programs, from wildfire mitigation and park projects tied to Proposition 4 funds to housing and homelessness programs the city may seek through competitive grants. Elliott encouraged ongoing coordination between city staff and Townsend to identify priorities and pursue state funding.
Council members thanked Elliott and asked specifically whether funding for Prop 36 implementation would appear in the budget; Elliott said the January proposal did not include dedicated funding but that legislative pressure could compel funding after the May revise, and that county-level implementation funds are likely subject to negotiation.
Next steps: Elliott said Townsend would continue regular briefings and coordinate on priority items and that he would return for further discussions during the spring budget and advocacy season.
